U.S. Markets Left in Limbo

By

Alexandra Scaggs And

Tomi Kilgore

Updated Oct. 29, 2012 2:11 p.m. ET

NEW YORK—As stock trading froze ahead of Hurricane Sandy, Treasurys moved higher in a shortened session, other trading was light, and investors were left to wonder whether market-moving U.S. economic data would be reported as scheduled later this week.

Futures contracts on U.S. stocks traded until 9:15 a.m. Eastern time, following European markets lower. Electronic trading of U.S. stock futures is expected to begin again at 4:30 p.m. Eastern time.

It wasn't clear when stock and derivatives markets would open again—the exchanges agreed to stay closed Tuesday and hoped to open Wednesday—but traders said the impact of the storm added to investors' worries.

"Certainly the storm is playing a role. Traders hate uncertainty, and this is the ultimate in uncertainty, because you can't predict the scale of the damage that may or may not occur," said
Piers Curran,
head of trading at London's Amplify Trading, an equities and futures firm.

While traders expect manufacturing and jobs data to drive action at the end of the week, it wasn't clear which of the week's data releases would be reported according to schedule. The Labor Department said it was "working hard to ensure the timely release" of Friday's closely watched October employment report, after it earlier said it wouldn't assess how to handle reports until after the inclement weather had passed. The Conference Board announced it would delay the release of a reading on consumer confidence until Thursday.

Trading continued in fixed income, currencies and commodities, though volume was lighter than normal, as trading floors in New York were closed.

Bond trading was halted by noon Eastern time on a recommendation from the Securities Industry and Financial Markets Association. Bond trading is suspended Tuesday.

The floors of the
CME Group
's
New York Mercantile Exchange, where energy futures are traded, and Comex exchange, where precious metals are traded, were both closed. However, energy and commodities continued to trade electronically.

In corporate news, a number of U.S. companies said they would postpone their quarterly reports because of the pending arrival of Hurricane Sandy. Among the firms delaying reports are pharmaceutical giant
Pfizer
,
financial data and news provider Thomson Reuters and power-plant operator
NRG Energy
.

The Stoxx Europe 600 fell 0.4%, as Greece appeared no closer to an agreement with its creditors on overhaul measures that would release the next tranche of aid. Greece will present its plan on austerity measures for 2013 to its European counterparts on Wednesday.

Asian markets ended mostly lower, with Japan's Nikkei Stock Average slipping less than 0.1% and China's Shanghai Composite losing 0.4%. Hong Kong's Hang Seng eased 0.2% after the local government introduced a buyers' tax on property purchases by nonresidents and companies in an effort to reduce speculation amid strong demand from mainland Chinese investors.

Front-month crude-oil futures declined 0.4% to $85.93 a barrel.

Gold futures for October delivery were lower, falling 0.2%, to $1,708.20 a troy ounce.

In light currency trading, the dollar gained ground against the euro and then yen. Major currencies traded within a tight range. At the same time, overseas traders are preparing for a Tuesday announcement from the Bank of Japan, which is expected to introduce more monetary easing.

A flight to safety boosted Treasury bonds Monday, as investors braced for potential impact from the storm. At noon in New York, the benchmark 10-year note rose by 8/32 in price to yield 1.721%. The 30-year bond was 23/32 higher to yield 2.882%. Bond prices move inversely to their yields. The 10-year yield earlier touched 1.703%, the lowest level since Oct. 16.

The corporate-bond market was open but illiquid, with most bonds weakening against Treasurys.

In corporate news, shares of
Mod-Pac
Corp.
rallied 14% in early electronic trading after the print-services company said it received a buyout proposal from a group of investors that includes the company's chairman and chief executive.

Burger King Worldwide
reported third-quarter earnings and revenue that exceeded analyst estimates, and initiated a new quarterly cash dividend of four cents a share.

PG&E
reported third-quarter adjusted earnings that topped forecasts but revenue that came up a bit short. The gas-and-electric utility also backed its full-year earnings estimate.

Clean Harbors announced an agreement to acquire oil recycler Safety-Kleen for $1.25 billion in cash

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